California lawmakers fail to pass budget

California lawmakers narrowly failed to pass a $40 billion budget on Sunday. [snip]

The bill includes $14.4 billion in new taxes and $15.1 billion in spending cuts in a bid to close a $42 billion budget deficit the state's government faces over the next 17 months.

Residents of the "Golden State" face a 1 cent [I.e., a 12.5% increase] sales tax rise, steeper income and gasoline taxes and higher vehicle licensing fees. Some aspects face voter approval in May.

Republicans seeking re-election have faced pressure from constituents averse to tax increases, while Democrats are under similar pressure from voters to maintain spending... [last I looked, everyone in the private sector was cutting back in this time of hardship - but evidently that's just for the working class. [snip]

This month Standard & Poor's Ratings Services cut its rating on California's general obligation debt, which has left California, the biggest issuer of public debt, with the lowest rated GO bonds of any U.S. state.

Nevertheless, The budget, which extends through June 30, 2010, also relies on borrowing [another] $11.4 billion. If California receives at least $9.1 billion in new federal funds, the spending cuts would be trimmed [I.e., they'd keep spending at a higher level [snip]

California's treasurer has started delaying tax refunds and other payments because of the cash crunch.

[It's the same old scam: they continuously spend us into oblivion - even when we haven't given them permission to do so {I.e. 'deficit spending'} - and every few years when the crap hits the fan claim the only 'responsible' thing is a 'balanced' approach of some spending cuts and even more taxes. This is the consequence of our permanent Democratic majority in Sacramento {as aided my unions and the media}. ]

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